Sunday, January 17, 2016

JO Coffee ETN Daily Chart Positive Divergence

The daily, weekly and monthly charts for JO indicate that coffee would like to form a flat base and then recover higher for the weeks and months ahead. Considering the sea of misery in markets, coffee will likely be one of the few winners this year. But enthusiasm for a sharp recovery in this morning brew must be tempered since commodities deflation has created a dark cloud over markets that may continue for many months.

The green lines show the positive divergence in play. The stoch's are oversold. Price has violated the lower standard deviation band. All these indications point to a bounce; a near-term upside target would be 18.6-18.9. Keystone bot JO on Friday during the market carnage and will either trade it going forward or hold it for much of the year forward or a combination of both. If JO takes a nice strong bounce, the profits may be taken and then it can be reentered at a slightly lower value. JO is a knife-catch highly speculative play so caution is warranted. It is also thinly traded which creates additional volatility. So pour yourself an extra cup of coffee to help pump your heart and pump JO higher. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

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